Top congressional transportation leaders have expressed concern to Gov. Ed Rendell and other state leaders about leasing toll facilities like the Pennsylvania Turnpike to private investment firms.
House Transportation Committee Chairman Rep. James Oberstar, D-Minn., and highway subcommittee Chairman Peter A. DeFazio, D-Ore., said the committee could undo any private-public partnerships "that do not fully protect the public interest and the integrity of the national [highway] system."
Mr. Rendell has proposed leasing the Pennsylvania Turnpike for a minimum of $10 billion, then investing the money and using the projected $965 million in yearly proceeds for the state's highway and bridge program.
Last month, he told the state Legislature to send him a bill authorizing public-private partnerships by mid-June. Many lawmakers have expressed skepticism and opposition.
The five-member Turnpike Commission is not only against the idea but proposes a "public-public" partnership under which it would expand its oversight and tolling to Interstate 80.
Yesterday, another opponent, the Pennsylvania Public Interest Research Group, a consumer advocacy organization, reiterated that selling the turnpike would harm the state's long-term financial health and cede control of public transportation.
"Investors are unlikely to commit to a deal if the federal government is likely to void it," said PennPIRG spokesman Jim Swoyer. "The Pennsylvania Turnpike should be managed for public interest, not private profits. We are glad Congress is putting some brakes on the rush to privatization."
The congressional leaders said they would look into developing model legislation in future transportation legislation, if it appears feasible after further study.
"These deals make good business sense to the companies that are investing in the projects, but we have serious concerns about whether these transactions offer a net balance of benefits for the American public," Mr. Oberstar and Mr. DeFazio said in letters to Mr. Rendell, legislators and state transportation officials.
"We write to strongly discourage you from entering into public-private partnership agreements that are not in the long-term public interest in a safe, integrated national transportation system that can meet the needs of the 21st century," they said in their letter.
